Why second-hand fashion presents both opportunities & risks for retailers

Sustainability has moved from a marketing differentiator to a commercial and compliance priority in fashion retail — shaping everything from product claims to resale models. Resale and circular economy models are increasingly positioned as practical responses to the environmental impacts of retail consumption — extending product lifecycles, reducing waste and lowering demand for new production. 

By facilitating repair, refurbishment and second‑hand sales, retailers can demonstrate tangible action on sustainability while responding to shifting consumer expectations around value, longevity and responsibility. When implemented credibly, resale can form a meaningful part of a brand’s sustainability strategy — so long as claims about environmental benefits are accurate, proportionate and supported by how the scheme operates in practice.

As retailers seek to respond to consumer demand for more responsible choices, clarity and credibility are essential to avoid legal challenge and reputational damage. That’s why — ahead of our Future of Retail: Risk & Resilience Conference 2026 — Megan Carden explores the drivers behind this trend and considers the opportunities and risks that it presents for retailers.

Why is second-hand fashion on the rise?  

The second‑hand fashion and luxury market is set to grow significantly faster than the first‑hand market through to 2027. 

A range of economic, cultural and environmental factors are driving this shift, including: 

Cost

Cost‑of‑living pressures appear to be accelerating changes in consumer behaviour. According to Nationwide, more than a quarter of consumers expect to cut back on fashion and clothing spend this year, while 24% plan to turn to second‑hand purchases as a way of managing costs. 

Individuality

Consumers are increasingly favouring items that feel unique rather than mass-produced. This is particularly pronounced among Gen Z, with Barclays research suggesting that younger consumers associate pre‑loved items with greater fashion appeal (30%) and individuality (31%). 

Social media

Growing online conversation around pre‑loved fashion — including content driven by Gen Z TikTok creators — has helped to normalise and celebrate second‑hand clothing. This influence is now feeding directly into physical retail spaces, with the Guardian recently reporting that younger, fashion‑conscious shoppers are helping UK charity shops to outperform parts of the wider retail sector, despite rising operational costs on the high street. 

Accessible luxury

Second‑hand shopping has also made luxury fashion more accessible, enabling consumers to buy designer and high‑quality items at a fraction of their original price. This includes charity shops as well as platforms such as Vinted, Depop, eBay and Reselfridges.

Environmental

Environmental concerns remain a key driver of resale growth. Oxfam estimates that if UK consumers bought half of their next wardrobe second‑hand, it could cut carbon emissions by the equivalent of flying around the world more than 17,000 times. Set against a backdrop of widespread criticism around fast fashion’s environmental impact, second‑hand clothing is increasingly viewed as a more sustainable alternative. 

How can brands use this shift to their advantage?

As sustainability increasingly influences purchasing decisions, retailers must keep up. 

Resale 

Brands that integrate resale into their business models benefit both economically and environmentally. As noted by The Business of Fashion, around two‑thirds of brands adopting resale do so to attract new customers, with resale programmes driving footfall by giving consumers additional reasons to visit, browse and buy.

It’s therefore unsurprising that major retailers such as H&M are investing in circular systems. 

Repair

Many fashion and retail brands — including Mulberry, Barbour, Levi’s and Patagonia — provide repair services. These initiatives encourage consumers to maintain rather than replace items, helping to shift consumer behaviour away from disposable consumption.

By encouraging garments to have a longer lifespan, brands can reposition themselves away from fast fashion perceptions and towards longer-term value. 

General sustainable practices 

Well-informed consumers prefer brands that prioritise responsibly-sourced materials, ensure ethical labour practices and minimise carbon emissions. Carrying out regular supply-chain audits helps to uphold high standards and build trust.

Transparency 

Retailers adopting circular business models will understandably want to promote these initiatives and realise their commercial value. However, maintaining customer trust and confidence is essential, including through clear and accurate product descriptions, robust authenticity checks, efficient return and refund processes and transparent sustainability credentials. 

Product claims relating to sustainability, longevity or performance should always be capable of substantiation. Otherwise, exposure to regulatory and reputational risk will be heightened. 

Risk

In seeking to promote the ‘green’ credentials of resale models or making other sustainability claims, businesses will face increased scrutiny from regulators — particularly since the introduction of the Green Claims Code by the Competition and Markets Authority (CMA) in 2021. 

What was once a reputational and regulatory concern now carries far more serious legal consequences, driven by a combination of recent legislative developments. The Digital Markets, Competition and Consumers Act 2024 has given the CMA stronger enforcement powers, while the Economic Crime and Corporate Transparency Act 2023 means that greenwashing can be a criminal offence for failing to prevent fraud. 

Common pitfalls when making environmental claims

Retailers must exercise particular care in how sustainability and resale narratives are framed. Broad, aspirational or unqualified claims are especially vulnerable to challenge. 

In the context of the fashion retail sector, the CMA has issued specific guidance for retailers, highlighting common pitfalls when making environmental claims.

These include: 

• Using vague terminology such as ‘sustainable’ or ‘green’, which may mislead consumers if not clearly explained and evidenced.
• Using evocative imagery including earth, leaf or recycling symbols (🌍🌿♻️) where these imply environmental benefits that can’t be substantiated.
• Making unclear comparisons, for example claims that products use ‘better’ materials without specifying the comparator or basis for improvement.

The CMA has also issued guidance connected to supply-chain issues. Retailers may be held accountable for making misleading green claims even where those claims originate with manufacturers or suppliers — reinforcing the need for robust due diligence and oversight across the full lifecycle of environmental messaging. 

Talk to us 

It’s vital for retailers to have a true legal partner on their side to withstand the challenges and take advantage of opportunities presented by the ever-changing retail landscape. 

We act as that partner — one which deeply understands the sector and can help to achieve your commercial goals.

As a leading independent full-service retail law firm, we work closely with the UK’s largest retailers across beauty, fashion, leisure and hospitality, food and drink, automotive and health. 

We also have specialisms in ESG and placemaking as well as RetailTech and eCommerce.

If you need support in reviewing policies and practices, managing legal and reputational risks around issues such as green claims, supply-chain transparency or customer communications, talk to us by giving us a call, sending us an email or sending us a message.